Firth v Liaris

Firth v Liaris concerned an appeal to the New South Wales Court of Appeal from a decision of a single judge. The appellant, Mr. Firth, alleged that he had not been properly advised by his solicitor, the respondent Ms. Liaris, regarding his common law rights to damages for personal injury. This alleged failure to advise led to Mr. Firth accepting a settlement offer that he later contended was significantly less than what he would have received had he pursued his common law claim.

The primary legal issues before the Court of Appeal were whether Ms. Liaris had been negligent in her advice to Mr. Firth, and if so, whether that negligence had caused Mr. Firth to suffer loss. Specifically, the court had to determine if Mr. Firth had been deprived of his common law rights and, consequently, whether the damages awarded for future economic loss were excessive.

The Court of Appeal found that Ms. Liaris had indeed failed to advise Mr. Firth of his common law rights, a failure that constituted a breach of her duty of care. The court reasoned that a reasonably competent solicitor would have informed their client of all available legal avenues, including the potential for a common law claim. The court then addressed the quantum of damages, concluding that the original award for future economic loss was too high and required adjustment.

The appeal was allowed. The original order of the trial judge was set aside, and judgment was entered for the plaintiff, Mr. Firth, in the sum of $64,000.00. There were no orders made as to the costs of the appeal.